VICI Properties (NYSE:VICI), one of the largest U.S. gaming REITs, faces a crossroads amid lease concerns. Analysts hold diverging views on valuation and operational risks.
The Caesars Entertainment regional gaming lease has a coverage ratio near the critical 1x threshold. This has prompted cautious stances from major financial institutions.
In December 2025, the rating was downgraded from Outperform to In Line, with price target cut from $36 to $32. The stock trades at approximately 12x estimated FY2026 AFFO.
Regional casinos face competition from online betting. The low coverage ratio could pressure lease payments if revenues decline.
Some analysts describe AFFO accretion as "skinny." The company boasts a strong balance sheet, a 6.32% dividend yield, and 8 consecutive years of dividend increases.
